Bloomberg Daybreak: Europe Edition Update: French Budget Crisis Risk, Trump Meets Zuckerberg & 130k Jobs At Risk
Nov 28, 2024
Dan Hansen, Bloomberg's chief UK economist, shares insights on the potential 130,000 job losses tied to the £26 billion tax hike proposed by UK Chancellor Rachel Reeves. He discusses the alarming ramifications for businesses forced to pass these costs onto employees. Additionally, the conversation dives into the precarious situation in France, where the finance minister's budget bill faces significant hurdles. The market's reaction, including rising borrowing costs, highlights growing concerns over economic stability in both France and the UK.
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French Budget Crisis
- French Finance Minister Antoine Armand is willing to compromise on the 2025 budget.
- This is to prevent opposition parties from destabilizing the government.
UK Tax Hikes and Job Losses
- Chancellor Rachel Reeves' tax hikes could lead to 130,000 job losses, according to Bloomberg Economics.
- This analysis assumes businesses will offset increased costs by reducing employment.
UK Vulnerability to US Tariffs
- UK industries, especially pharmaceuticals and transport equipment, are vulnerable to potential US tariffs under a Trump administration.
- This is due to the US being a primary export destination for several UK sectors.